Major United States cryptocurrency exchange Coinbase had bought blockchain intelligence startup Neutrino for $13.5 million, according to an acquisition contract reportedly obtained by Bitcoin Magazine on Wednesday, Mar. 6.

The legal document, whose authenticity has not been independently verified by Cointelegraph, is dated Feb. 15, and it reportedly provides the exact amount of the two firms’ purchase contract, which was previously unknown. The document states that the crypto exchange has agreed to acquire “the units of the respective total ownership representing the entire share capital of the Company [Neutrino].”

According to the document, Neutrino’s founders, CTO Alberto Ornaghi, CEO Giancarlo Russo and CRO Marco Valleri, will each receive $2.9 million, proportional to their shares in Neutrino. In the meantime, 360 Capital, an EU venture capital firm that invested $565,000 in Neutrino back in 2017, will reportedly receive $4.99 million.

As the contract was signed, the notary paid each founder $487,000, while 360 Capital received $4 million. The remaining amount — over $8 million — is allegedly stored at a Credit Suisse trust account affiliated with the company. However, it was not immediately clear when the sum will be transferred to the former shareholders.

As Cointelegraph previously wrote, Coinbase acquired Neutrino in mid-February, stating at the time that the company will continue to operate as a standalone business in its London office.

Later the crypto community, namely Block Digest podcast members, revealed that Neurino’s founders were directly affiliated with Hacking Team — a controversial information technology outfit that purportedly sold offensive surveillance capabilities to governments, law enforcement agencies and corporations across the world, with authoritarian regimes allegedly among them.

Following the news, the crypto community launched a hashtag #DeleteCoinbase, urging users to cut ties with Coinbase. In response, Brian Armstrong, co-founder and CEO of Coinbase, announced that Neutrino staff with prior connections to controversial software firm Hacking Team will transition out of their new roles at the company.

13 Comments

Gloria Gloria

the most silly step coinbase could do lol

Wisnu Jayawardana

We all should say there #deletecoinbase

Marina Gomes

It's a purchase which will bring coinbase to death

susana antunes

how nice that I don't use coinbase because finding out that you are being spied is terrible

Flormina Aure

it would be better if Coinbase spent these money on the development of support

Bir kul

and i'm sure that these money were stolen from coinbase users accounts

Abi

I have already deleted Coinbase wallet

Ioanna Stavrou

It's too late for coinbase to try solving this problem. it won't return our trust

احمد الدقيقى

coinbase likes to be a friend of terrorists and now hackers ))

Timothy MacMac

my coinbase acc deleted thank god I never provided them ssn

Domingas Santos

It's a shame but Coinbase got what it costs!

JAMMET Dimitri

Scammers acquired hackers. Coinbase supplements its company with villains. Now I started to understand why Brian is so similar to Dr. Evil.

David Goncalves

This is a terrible purchase! Hackers should not work in companies after they were spotted for fraud. Why Coinbase does not understand it?